He we go...again

[tom of poland]

LNP Governments always deliver money for the Sharks. Treasurer Costello and Bruce Baird paid for the Southern Grandstand with a grant in 2006-2007. Labor never gives us anything.

Cook is a blue ribbon liberal seat, the grant for the Monty Porter stand was the only time I remember getting any grant from any level of government. Though Labor NSW Premier Neville Wran provided a government guarantee for us when we had financial troubles during the construction of our leagues club in the late 70s.

 

[sharkman73]

No SYDNEY team is safe. Not even Roosters with small junior base.

NRL want to make teams geographically based. It really depends on how they break it up. For example Sharks, Dragons and Dogs join (not merge) to form a Southern District team. Tribalism will remain in NSW Cup. But all new teams will have new names and identities.

Think of A League initial setup when Sydney teams formed the new Sydney FC.

Mate you're kidding if you think some Sydney teams aren't safe.

 

[tom of poland]

If I remember correctly the Sydney Sookarh scene underwent the big name changes to rid the competition of their racial divides. i.e. Apia Leichardt, St George Budepest, Pan Hallenic, (thats all me old memory can remember)

South Sydney Croatia, Sydney Prague, Polonia North Side, Yugal Ryde, Melita Eagles Newtown, Marconi Fairfield, and Concordia the German Club is what I remember.

 

[sharkman73]

Email sent to members today.

Dear Members,

In a landmark agreement that will secure the Cronulla-Sutherland Sharks financial future, the Cronulla Sharks Leagues Club has agreed to terms with partner Capital Bluestone on approximately a $40 million arrangement which will see the club sell our remaining interest in the Woolooware Bay Town Centre mixed-use development.

This agreement represents the start of a new era for the Sharks with unprecedented security for the club which will enact the strategic re-investment of funds, and of which will be underpinned by a highly experienced investment committee.

Under the leadership of a robust management and board the agreement also enables us to focus on our core operation, which is to create a Club that makes you, your family and friends feel welcome, while providing a range of services and support to our local community, including the Sharks Football Club.

It’s important to note the valued input and decisions of our board in 2012 for originally brokering the partnership with Capital Bluestone.

That relationship continues, with the company committed to delivering a new revitalised Leagues Club for our members, which is expected to be complete in 2021.

Commenced as a joint venture between the Sharks Leagues Club and Capital Bluestone in 2011, the Woolooware Bay Town Centre project comprises four stages. The agreement signed yesterday means the Sharks receive approximately $40 million under the arrangement for consideration of our agreed exit from the joint venture.

This includes $9 million for the land value of the future retail centre, $12.2 million for consideration of the air space above the retail centre, as well as an estimated $18 million for the balance of stage 3 residential sales. This is in addition to the approximately $18 million in development profits we’ve already received to date as a result of the development of the residential stages completed.

We acknowledge and thank our partner Capital Bluestone for working towards this successful outcome for both parties and for its ongoing support for the Sharks, including as a sponsor for the Football Club since 2011, its investment in the Sharks Have Heart initiative and as a supporter of the different community initiatives of our Leagues Club.

This agreement enables us to de-risk rather than divorce ourselves from the development. We still remain an active and engaged stakeholder in the Woolooware Bay Town Centre development and this includes managing the interior fit out for our new Club premises, which are expected to be complete in 2021. Of the final amount payable to the Sharks for our remaining interest in the development, $12 million will be held in an escrow account for use specifically to deliver the Leagues Club refurbishment.

Our involvement in the development has been a major success for our Club. Now, by selling our remaining interest to focus on the future, we’ve been able to strengthen our immediate financial position, secure our future through a revitalised Club premises to provide a strong recurring income stream and, importantly, realise investment returns on our capital.
Stages 1 and 2 of the Woolooware Bay development together comprise approximately 400 residential apartments, which are all complete and sold. We received an up-front payment of $10 million in 2012 and an additional $485,000 in profit distribution in 2017 for stage 1, and then $7.41 million in profit for stage 2, paid in 2018.

An agreement was made by the joint venture partners to postpone the development of the shopping centre, initially earmarked for these earlier stages, to focus on the delivery of residential apartments to capitalise on the strong performing residential market at the time. This strategy resulted in the Sharks receiving approximately $36 million in total for the development of the residential component, instead of approximately $25 million forecast under the original schedule.

Stage 3 comprises 238 apartments and nine town homes and is under construction, with completion scheduled for late 2019. with the $18 million balance to be paid by the end of April 2019.

Stage 4 will comprise 255 apartments, a 71-key hotel, an 18,000sqm shopping centre and a revitalised Sharks Leagues Club. Depending on residential sales and retail leasing, this final stage is expected to commence in late 2019.

Capital Bluestone has gone above and beyond its brief on this project to help our Club when required. Its support over the years has been strong and varied, from providing the Club revenue advances to help in difficult times.

While what is outlined above puts the Club in a strong financial position, there is still considerable work to be done to turn around the current trading performance of the club, which at present we can concede isn’t where it needs to be. We will require time to start closing the gap to profitability, with the boost from the Capital Bluestone injection of funds assisting in the process but certainly not solving all the current issues.

It will be the priority of the Board to use the development proceeds responsibly while reshaping our business model to ensure continued profitability long into the future.

Just to ensure clear and transparent communication on the joint venture, we have outlined below the history of the project. This deal puts the Club on a strong and steady path forward for the first time in years.

It’s an exciting time for the Cronulla Sharks and we thank you for your ongoing support.

Dino Mezzatesta
Chairman



THE CRONULLA SHARKS LEAGUES CLUB & CAPITAL BLUESTONE JOINT VENTURE AT WOOLOOWARE BAY

Timeline

2010:
• The Leagues Club Board identifies the potential for the sale and development of its land holdings at Woolooware Bay to secure the future of the Sharks.
• An expressions of interest process is undertaken to identify a development partner to work with the Sharks to develop its land holdings, which cover approximately 10 hectares.

2011:
• Bluestone Property Solutions (now Capital Bluestone) is appointed as the Club’s chosen development partner.

2012:
• Capital Bluestone advances Cronulla Sutherland Leagues Club a $10 million share of future revenue to pay down Club’s existing debt.

2013:
• Initial approvals for the town centre lodged, the first residential apartments and plans for the retail centre are approved.

2014:
• Work gets underway and the first residential stages are launched with a strong response from the market.

2015:
• The first two residential stages are sold out, one of the stage three buildings is too.

2016:
• Construction progresses well. Stage 1 is completed and stage 2 gets underway.

2017:
• Woolworths and Dan Murphy’s agree to leases in the forthcoming retail centre.

2018:
• Construction continues as stage 2 is complete and stage 3 is commenced, however the residential market downturn means apartment sales in stage 3 slow.

2019:
• Construction of stage 3 to be complete and stage 4 to be launched. Stage 4 includes apartments as well as Bay Central shopping centre, a hotel, revitalised Sharks Leagues Club and more parking.

Key figures

• Due to the staged timing of the first residential stages, total revenue from the residential component paid to the Sharks totals approximately $36 million instead of the $25 million initially forecast under the original schedule.
• This is separate to the additional $21.2 million, to be paid to the Sharks for consideration of the land and air space value for the lot on which the retail component will be developed.
• Of this, $12.2 million will be set aside and specifically used for the club’s new interior refurbishment.
• Estimated total return to the Sharks as a result of the development of the residential component:

• Stage 1 - Upfront Payment: $10,000,000
• Stage 1 - Profit distribution: $485,000
• Stage 2 - Profit distribution: $7,410,000
• Stage 3 - Profit distribution (forward advanced): $18,000,000
• Total amount payable to Sharks for residential component: $35,895,000
• Land and air space value (stage 4): $21.2 million
• Total value of Sharks involvement in the development: $57,095,000

• 
  
• The estimated end value of the revitalised Sharks Leagues Club is $5.15 million

 

[glenmoresharkie]

Excellent news.

Eat a dick Paul Kent

 

[sharkman73]

Eat another dick Paul Kent

Fixed

 

[carinashark]

Fixed and double fixed, I’ve been in retail most of my life and I’ve seen a lot of money lost. The Sharks are better off out of it.

 

[Weaponhead]

Its a great result for now but they will chew through a shitload of that money covering losses for a while. This is the clubs one and only shot to set itself up. Don't f**k it up management and board.

Until the joint can be run without losing $3m a year, they are still vulnerable.

And EAD Kent

 

[bad boy bubby]

This agreement represents the start of a new era for the Sharks with unprecedented security for the club which will enact the strategic re-investment of funds, and of which will be underpinned by a highly experienced investment committee.

I sincerely hope the committee chosen IS highly experienced enough to keep our club going for a very long time.
I, for one, reserve all judgements until said committee is made public.

 

[Weaponhead]

This agreement represents the start of a new era for the Sharks with unprecedented security for the club which will enact the strategic re-investment of funds, and of which will be underpinned by a highly experienced investment committee.

I sincerely hope the committee chosen IS highly experienced enough to keep our club going for a very long time.
I, for one, reserve all judgements until said committee is made public.

Wise words given the history of rampant incompetence that has characterized the club of the decades.

 

[roboshark]

Where's the 18mill gone. All debt?

 

[snout]

Chew a fat Kent you fat karrnt

 

[jack059]

Who farted.

 

[Generalzod]

Who farted.

What’s that smell lol

 

[Card Shark]

I stopped reading at:

“Dear Members,

In a landmark agreement that will secure the Cronulla-Sutherland Sharks financial future”

Knowing how we f**k things up, call me cynical but this could be the (delayed) beginning of the end.

 

[taipan]

Surely we won't employ naive or incompetent or snake oil salesmen football execs in the future.
No more paying huge sums for the next SBW,no more pricks from a jab or vice versa, no more special TPA accounts to keep the lads happy, no more paying to coaches before due date.

Just transparency and capable investment decisions and a refurbished Leagues club well patronised and we should be cooking with gas.The bistro is a classic example of what can be done.
Have we got ourselves a new CEO yet?

 

[Dragon Slayer]

The Club is fighting strongly for survival by negotiating this agreement with Bluestone. Dino & the board should be greatly applauded for pulling this off in a highly stressful Club environment and when the property market has had the breaks pulled in recent times.

But do the fans get it about putting your bum on a seat on game day ? It’s not cool as a fan to whinge about various things and then not turn up to games when available to do so.

In the end the Club can only do so much. The truth is the level of support on average on game day has not been enough. There’s two types of groups that follow the Sharks. There’s supporters and there’s passive observers. We need a shyte load more of the supporter category.

 

[taipan]

Agree .Think we could boost our averages with more cover or extension of ET stand to goal lines,as a starting point.

I heard don't know whether it's true, break even was a 13,000 crowd.

But 6pm Friday nights are never going to assist supporters who live outside the Shire.

Also patronage of the refurbished Leagues club is essential.

 

[Dragon Slayer]

Agree .Think we could boost our averages with more cover or extension of ET stand to goal lines,as a starting point.

I heard don't know whether it's true, break even was a 13,000 crowd.

But 6pm Friday nights are never going to assist supporters who live outside the Shire.

Also patronage of the refurbished Leagues club is essential.

Yes 13,000 seems to be around the figure mentioned that the Club needs on game day to just break even.

Which means every time the crowd figure is below that number non attending fans that have the means to attend but haven’t have contributed to the Clubs finance crisis.

 

[Quigs]

Wasn't the 13 thou a figure that Lyall raised during his time at the helm.

2016 yes I still love that year.